CRISC Information Technology and Security Practice Question
A risk practitioner is using the FAIR model to quantify cyber risk for a proposed new online payment system. Which factor must be estimated to calculate the probable financial impact of a data breach?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Loss magnitude
In FAIR, the probable financial impact is derived from the loss event frequency and the loss magnitude. Loss magnitude estimates the financial loss per incident.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Threat event frequency
Why it's wrong here
This is part of loss event frequency, not impact.
- ✓
Loss magnitude
Why this is correct
Correct. Loss magnitude estimates the financial impact per event.
- ✗
Vulnerability severity score
Why it's wrong here
This is a technical metric, not a financial one.
- ✗
Annualized rate of occurrence
Why it's wrong here
This is part of loss event frequency, not the impact itself.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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